Indian and US Foreign Ministers to Meet in New York Amid Trade Tensions
External Affairs Minister S. Jaishankar is scheduled to meet U.S. Secretary of State Marco Rubio in New York on the sidelines of the UN General Assembly. The talks are set against a backdrop of fresh trade tensions, following the US imposition of steep tariffs on Indian exports over its energy trade with Russia. Discussions are expected to cover the trade dispute, cooperation in the Indo-Pacific, and global security challenges, with both nations seeking to stabilize economic and strategic ties.
Unpacked:
The US imposed 50% tariffs to pressure India into reducing its imports of Russian crude oil, aiming to limit Russia’s energy revenues amid the Ukraine conflict and discourage other nations from circumventing Western sanctions.
Russia is now India's largest oil supplier, accounting for 35-40% of imports. These discounted purchases have saved India $10–25 billion since 2022, helping control domestic fuel prices and support economic growth.
India argues that affordable Russian oil is essential for its energy security and economic development, given its dependence on imports and need to support a large, growing population.
Trade tensions risk undermining strategic US-India cooperation in the Indo-Pacific, where both nations seek to balance China’s influence and maintain regional stability. Persistent disputes could complicate security partnerships and joint initiatives.